Question $1$ Question $1(3$ points$)$

While the PESTEL framework enables us to scan and evaluate the broader external

environment, it does not facilitate the assessment of a specific industry's profit

potential. In this context, 'industry's profit potential' refers to the expected level of

profitability for the average firm within a particular industry.

True

False

Question $2(3$ points$)$

Michael Porter developed a

to help strategic leaders understand the

profit potential of different industries and position their respective firms in the

industry

Resource based view

PESTEL framework

Five Forces Model

VRIO framework

Question $3(3$ points$)$

is $($or are$)$ when things get more efficient and cost less as companies

in an industry make more products or services. When companies in an industry

achieve

they can spread fixed costs over more units, driving down

the cost per unit.

Network effects

Economies of scale

Capital requirements

Entry barrier

Question $4(3$ points$)$

The power of suppliers is high when the supplier's industry is concentrated. In this

case, by definition, there are not many suppliers increasing the power of suppliers.

True

False

Question $5(3$ points$)$

Even within the same industry, firm performance differs depending on strategic

group membership since they differ from one another along with dimensions such as

product and service offerings, market segments, cost structure, and customer service

strategies.

True

False

While the PESTEL framework enables us to scan and evaluate the broader external environment, it does not facilitate the assessment of a specific industry's profit potential. In this context, 'industry's profit potential' refers to the expected level of profitability for the average firm within a particular industry.

Question $1$ options:

True

False

Question $2$

Michael Porter developed a $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ to help strategic leaders understand the profit potential of different industries and position their respective firms in the industry

Question $2$ options:

Resource based view

PESTEL framework

Five Forces Model

VRIO framework

Question $3$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ is $($or are$)$ when things get more efficient and cost less as companies in an industry make more products or services. When companies in an industry achieve $\_\_\_\_\_\_\_\_\_\_\_\_\_\_,$ they can spread fixed costs over more units, driving down the cost per unit.

Question $3$ options:

Network effects

Economies of scale

Capital requirements

Entry barrier

Question $4$

The power of suppliers is high when the supplier's industry is concentrated. In this case, by definition, there are not many suppliers increasing the power of suppliers.

Question $4$ options:

True

False

Question $5$

Even within the same industry, firm performance differs depending on strategic group membership since they differ from one another along with dimensions such as product and service offerings, market segments, cost structure, and customer service strategies.

Question $5$ options:

True

False